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Politicos, realtors bat for drop in RR rates in Mumbai

Political parties opine that any rise in RR rates may adversely impact prospects in the ensuing Lok Sabha elections slated for April-May in 2019.

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In a poll bound year, political parties and realtors seem to be on the same page, especially when it comes to ready reckoner (RR) rates in Greater Mumbai. Both want the state government to reduce the present RR rates in view of the slow pace of economic growth, rising inventory and slump in the property prices.

Political parties opine that any rise in RR rates may adversely impact prospects in the ensuing Lok Sabha elections slated for April-May in 2019.

The RR is a guide published annually by the state and it determines the rate of the property in a particular area on which the stamp duty and registration charges are levied. Key factors which fix RR rates include stamp duty registrations, sales data, local surveys, visits to property exhibitions, and major transactions conducted in the year. The RR rates come into effect from April 1 across Greater Mumbai and rest of Maharashtra.

The Bharatiya Janata Party (BJP) and its ruling partner Shiv Sena as well as opposition Congress and Nationalist Congress Party have argued that the state government should not mull status quo on RR rates. The state government, which had introduced an average 3.95% RR rates for 2017-18, had retained it for the current fiscal following strong opposition from all stakeholders. From April 1, 2018 the average RR rate ranged between 5.40% and 5.86% for residential, 5.83% and 6.10% for land office, between 1.70% and 1.91% in Mumbai city and suburbs for 2017-18.

Parties and realty sector players plan to make their representations during the meeting organised by the Mumbai City and Mumbai suburban district collectors who have initiated the consultative process in this regard.

CREDAI-MCHI president Nayan Shah made a strong case for 10 to 20 per cent reduction in RR rates in the Mumbai Metropolitan Region. "The cut in RR is necessary following the fall in property prices. Any increase in RR rates will hamper the realty sector,'' Shah said.

NCP spokesman Nawab Malik pressed for 20 to 40% cut in RR rates considering the present realty market. Congress legislator Naseem Khan said RR rates need to be cut as the government recently introduced 1 per cent surcharge on stamp duty to mop up funds to finance slew of infrastructure projects in Greater Mumbai.

Atul Bhatkhalkar, BJP legislator from Kandivali East said that the state should reduce RR rates in Mumbai suburbs. "Revenue mobilisation should not be mere criteria for the fixation of RR rates. Any hike at this juncture will seriously affect the interest of the property buyers and the real estate sector,'' he added.

Shiv Sena MP Anil Desai said the government should not tinker with RR rates but cut it. ''The RR rate reduction will be crucial when the government is pursuing the ambitious target of providing Housing for All by 2022. Rise in RR rates will result in increase in stamp duty and registration charges making the property transaction dearer,'' he said.

How RR Rate Is Set

 

  • Ready Reckoner is a guide published annually by the state. It determines the rate of the property in an area on which stamp duty and registration charges are levied
  • Factors which fix RR rates include stamp duty registrations, sales data, local surveys, visits to property exhibitions, major transactions
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